First Quarter 2011 Palos Verdes and South Bay Real Estate Market Report

First Quarter 2011 Palos Verdes and South Bay Real Estate Market Report

Simply Click on the Market Report Desired Below :

Palos Verdes Peninsula 2011 1st Qtr. Market Information

Palos Verdes Peninsula Neighborhood 1st Quarter 2011 Detailed Real Estate Activity (This link provides a detailed listing of properties sold by MLS neighborhood )

Manhattan Beach and Hermosa Beach 1st Qtr. 2011 Market Information

Redondo Beach 1st Qtr 2011 Market Information

Torrance 1st Qtr 2011 Market Information

San Pedro 1st Qtr Market Information

2011 First Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes

The real estate market activity for the Palos Verdes Peninsula stabilized during the 1st quarter 2011, with overall sales volume almost identical compared to both last quarter’s sales as well as to the first quarter 2010 sales. Only Palos Verdes Estates, however, had a sale volume gain over the prior year ´s quarter with a 40% increase in sales, with the rest of the Peninsula having a 15% drop in sales.Buyers who can get financing are actively looking and aggressively offering where they see a deal. Sellers who are motivated to move are pricing their homes to sell. Buyers are taking advantage of significant discounts and record continuing low interest rates.

PRICE CHANGES:

Properties, on average, on the Palos Verdes Peninsula are selling for approx. 94% of list price. The average price per sq. ft. for Palos Verdes homes sold in the first quarter 2011 compared to the first quarter 2010, increased approx. 2% overall, but varied city by city. Prices per sq. ft. are down approx. 18% on the Palos Verdes Peninsula from their peak in 2006. Prices in the South Bay, however, have decreased much less than other areas in Southern California due to the relative few number of foreclosures compared to other inland areas.

The following is a chart of the sales price per sq. ft. for homes on the Palos Verdes Peninsula. Prices do seem to have stabilized. ( Note: I prefer to analyze average price per sq. ft. trends as the more often quoted “median” sales price is highly dependent on the mix of homes sold between less expensive homes and higher-end homes):

The figures included in the table below are only for the three months in the 1st Quarter :

INVENTORY – The total inventory of single family homes for sale in the cities listed above is up approx. 13% compared to the prior year but still averages only 4 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes.

FINANCING (See our web blog at http://mmegowan.activerain.com/ for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 4.6-4.9%, approx. the same as of end of last quarter. Rates for loans between $417,000 and $729,750 (conforming jumbos) are approx. 4.9- 5.0%. Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $729,750) have an average rate of approx. 5.4-5.5%. Jumbo loans require a higher down payment of 25 to 30%. All rates above are as of 4/30/2011, and assume a 20% down payment, a 1 point fee and a FICO score of at least 700.

First Quarter 2011 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula has fallen approx. 16% compared to the first quarter of last year. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this. A significant amount of this drop occurred in the last quarter after approx. 9 months with average price per sq. ft. remaining relatively stabile.

As far as picking up condos in this market for less than construction costs, the average price per sq. ft. paid recently for condos and townhomes in Palos Verdes has been approx. $318 per sq. ft. I would not consider this price to be significantly less than replacement cost including the cost of the land. Homes in this area have fallen much less than other areas because there has been so little new construction here, and much fewer foreclosures than in many other areas. This market is now considered a stabile market by loan underwriters.

The following is a chart of condos and townhomes for sale and sold over the last year